Sign Jumping, Ethics and Managements Agreements in QLD

There is nowhere in statute law that states a property management agreement is exclusive; the coverage of exclusive agreements in the PAMD Act is for sales only.

There is a however a contractual term in the management agreement stating that the management agreement is exclusive and that no other agent can  be appointed during the listing period without termination being in place.

Given this, the lessor is in breach of contract as opposed to breach of law if they appoint another agent whilst a continuing appointment is in place. The only remedy against the owner from their agent is legal action for breach of contract.

When you have other agents acting unethically and contacting owners of other peoples listings, there is little the listing appointed agent can do other than hope that the owners have been happy with the agency service and that they maintain some sense of loyalty.  When it comes to money and finances, loyalty sometimes doesn’t stack up; therefore it is increasingly common for owners to follow through with agents who make contact or the owner makes the contact themselves.

The other agent is acting lawfully in regards to ‘sign jumping’ due to federal consumer and competition laws; though they are said by many to be acting unethically. It is strongly recommended that agents look after their own clients as opposed to unethically and at times unprofessionally chasing other agents listings. It must be questioned that at the times approaches are made from other agents to owners, it could be putting our industry into disrepute.

 

The agent who is ‘sign jumping’ however may be in breach of federal privacy laws though. The question is how did they obtain the owners information? Lawfully people cannot be marketed to without their express or inferred consent; generally this means that there must be evidence that the person being marketed too has consented to the use of their details for marketing. The agency marketing would need to prove where the consent was obtained. RP Data and Price Finder clearly state on their systems (plus in the agreement with their client/agency that the details cannot be used for direct marketing).

 Agencies who use this unethical method of sign jumping should proceed with caution unless they can prove that the person has consented to the use of marketing. They should also ensure that they are signing owners up on the correct paperwork.

The managing agent may recommend to the client that they change their address to care of their managing agent by their agent to alleviate this problem.  Agencies could also pick up the phone and advise clients when properties are becoming vacant that they most likely will receive phone calls and or letters once the property is listed as vacant and to refer all agencies enquiring about the property and service direct to your agency, their exclusive managing agent.

 

If your agency is a member office of Real Estate Excellence or a PME system subscriber and you would like more advice on this matter  or any other property management matter; please email Stacey.holt@realestateexcellence.com.au    
The above comments are relevant to Queensland.

 

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